China Not Labeled Currency Manipulator

WASHINGTON—The U.S. Treasury Friday declined to name China or any other country as a manipulator of its currency in the Treasury’s much-awaited report on foreign-exchange policies.

The Treasury recognized there had been a move toward greater flexibility of the Chinese yuan. “Treasury’s view however, is that progress thus far is insufficient and that more rapid progress is needed.”

Lawmakers, hearing from U.S. manufacturers complaining their products are being outsold by Chinese goods made at a cheaper cost, wanted Treasury to name Beijing a manipulator and are threatening to pass punitive legislation. The Obama administration held up publishing the report until after the state visit by President Hu Jintao in January.

The report warns that Beijing risks fueling already high inflation and creating asset bubbles in its economy.